A Japanese Telecoms company has agreed to invest a staggering $50 billion in business and job creation in the United States - following a deal which was brokered by incoming US president, Donal Trump. The president elect triumphantly told the assembled media in the lobby of Trump Tower, New York, that SoftBank had agreed to invest $50 billion in the United States which would create 50,000 jobs over the next four years.
Since that deal was officially announced by SoftBank, shares have soared in the Tokyo-listed telecoms firm. SoftBank jumped more than 5% after the opening bell, which came just hours after the tycoon announced the deal while he wrapped his arm around flamboyant billionaire founder of SoftBank, Masayoshi Son.
During his election campaign Trump passionately declared that he would bring jobs back to the US and insisted he would also attract investment from overseas investors. He has already delivered a huge statement of intent before he even sets foot in The White House with the announcement of this deal.
A smiling Trump told reporters: 'SoftBank from Japan have just agreed to invest $50 billion in the United States which in turn will create 50,000 jobs.' It was also disclosed that SoftBank brandished a document which featured the names of his firm and that of Foxconn, the Taiwanese technology colossus that read; '˜Committed to invest $50bn + $7bn in US which will create 50k + 50k new jobs in the US over the next four years.'
The soon-to-be US president offered no specific details, and a Tokyo-based spokesman for SoftBank declined to comment. Foxconn, which assembles Apple's iPhone and supplies parts, also refused to comment. Son told reporters the money will come from a $100 billion investment fund he is setting up with Saudi Arabia's sovereign wealth fund and other partners, a move announced in mid-October, Japan's Jiji Press reported. ""Investors are welcoming the announcement,"" Shuji Hosoi, a senior strategist at Daiwa Securities revealed. He added that it was something unexpected, and the size of the pledge is big. Son's remarks were generally in line with what Trump has been saying (about boosting the economy).
SoftBank already has investments in the United States: in 2013 it paid $22 billion for 80 percent of Sprint. Son initially set his sights on a merger with T-Mobile, but that plan was abandoned owing to likely opposition from US regulators.